The federal government is suing some big pharmacy benefit managers over a system of drug rebates that regulators say has made the price of insulin soar for diabetic patients. Three companies that process about 80% of prescriptions in the United States — Caremark,

The Federal Trade Commission sued on Friday the three largest pharmaceutical intermediaries charged with negotiating drug prices on behalf of insurers, claiming they are illegally maximizing profits by steering patients to high-cost insulin products.

Some of the PBMs named by the FTC said in statements that the government's action showed that it does not understand how drug pricing works. But the FTC said the current system pr

Months earlier, the agency released a report alleging the companies drove up the costs of some medications, including insulin.

In January, a new Idaho law will take effect requiring reform of business practices by pharmacy middlemen — in search of tamping down prescription drug costs. The new law targets pharmacy benefit managers,